Explaining the Liquidity Trap I A Level and IB Economics

The liquidity trap is a useful concept to use when evaluating the effectiveness of changes in monetary policy in achieving macroeconomic objectives. In this revision video we look at what a liquidity trap is, what can cause it and consider four ways in which macroeconomic policy might attempt to overcome a liquidity trap.

#aqaeconomics #ibeconomics #edexceleconomics

• #education
• #monetary_policy
• #liquidity_trap
• #keynesian_economics
• #macroeconomics
• #low_interest_rates
• #central_banks
• #edexcel_economics
• #ocr_economics
• #aqa_economics
• #ib_economics